The Gazprom Board of Directors took note of the information about the Company’s financial strategy for major projects on transboundary gas pipelines construction.
At present, the Company is engaged in a number of strategically important gas transmission projects – TurkStream, Nord Stream II, Power of Siberia and Power of Siberia-2. They will help increasing the reliability of Russian gas supplies to international consumers and setting up new export routes.
The Meeting pointed out that the financial strategy secured a high level of Gazprom’s financial stability necessary for executing such major projects.
Gazprom adheres to a conservative approach to financing capital costs – thus, for nine years already they have been fully secured with operating cash flow. Following the 2014 results, Gazprom Group generated a record-breaking cash flow – USD 17.2 billion – and came out on top among global major public oil and gas companies by this indicator. Due to the pursued strategy, Gazprom shows impressive liquidity ratios and a rather low debt load level.
In addition, the Company is in a good position for attracting borrowings from international capital markets on favorable terms and it also has a successful experience of project financing.
Thereby, Gazprom has every opportunity for financing the scheduled transboundary gas transmission projects.